FTSE 100
The FTSE 100 is selling off this morning, following yet another almighty leg higher yesterday. The news that we will see another bout of easing from the BoE was certainly greeted with glee yesterday, yet we are seeing a retracement of that big move this morning.

The key level of support to watch out for is 6489, which represents the October 2015 high. Ultimately, we have seen a hugely overextended rally of late and a pullback was always likely soon enough. Given the trend of selling off at month start and rallying at month end, there is a chance we could start pulling back.

However, we have not seen the sign that a wider pullback is about to occur yet and as such we remain within a short-term uptrend.

Ultimately the 6489 support level remains the first major hurdle that would need to be overcome and as such, the reaction to that level is crucial. A break below would look towards 6447 as the next support level. A bounce would look towards 6600.

DAX
The DAX has found support on the crucial 9700 level this morning, which is set within a more gradual rally earlier in the week. It seems likely that this rally will continue and only with an hourly close below 9512 would we see a return to the bearish tone set on Friday.

Dow Jones
The Dow is currently attempting to create a new intraday lower low following the inability to break higher once more this morning. The reaction to this 17,876 level will subsequently be key to today’s price action, where an hourly close below it will likely spark a more protracted move lower.

Unlike the FTSE, the Dow and DAX are both well below their highs set last Friday. As such, we could turn lower soon enough, yet we have not seen any signs of that occurring yet. A break and close below 17,662 would be required for that bearish view to come back into play.